9.9.2013_ECO_102

9.9.2013_ECO_102 - How Countries Gain from International...

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Increasing Consumption through Trade How Countries Gain from International Trade Gains from Trade for Japan and the United States
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Summary The basis for trade is comparative advantage , not absolu te advantage. Individuals, firms, and countries are better off if they sp ecialize in producing goods and services for which they have a comparative advantage and obtain the other good s and services they need by trading.
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Three Types of Game Positive-Sum Game: Trade Zero-Sum Game: Ex? Negative-Sum Game: Ex?
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Does Anyone Lose as a Result of International Trade? How Countries Gain from International Trade In our cell phone and digital music player example, consumption increases in both the United States and Japan as a result of trade. Discussion: So I say “Everyone gains, and no one loses from the international trade.” Am I right? Why or why not?
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Outsourcing To send out (work, for example) to an outside provider or manufacturer in order to cut costs.
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Why Don’t We See Complete Specialization?
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9.9.2013_ECO_102 - How Countries Gain from International...

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